Between 2011 and 2016, UK unemployment fell from a high of 8.5% to 4.8%. Some argue that Government attempts to reduce unemployment inevitably lead to trade-offs with other macroeconomic policy objectives. 1. Explain how government policies can reduce the natural rate of unemployment. 2. Discuss the view that falling unemployment will inevitably lead to trade-offs with other macroeconomic policy objectives.

Between 2011 and 2016, UK unemployment fell from a high of 8.5% to 4.8%. Some argue
that
Government attempts to reduce unemployment inevitably lead to trade-offs with other
macroeconomic policy objectives.
1. Explain how government policies can reduce the natural rate of unemployment.
2. Discuss the view that falling unemployment will inevitably lead to trade-offs with other
macroeconomic policy objectives.